A cheque is a negotiable instrument. It can be transferred to another person by ‘endorsement' (except in case of a bearer cheque which can be transferred by mere delivery). The endorsement is done by signing at the back of the cheque and writing the name of the party to whom it is to be transferred. For example, if a cheque payable to Mr. P. Ram Dev is to be endorsed in favor of Mr. Kishan Lal, Mr. P. Ram Dev will write at the back of the cheque as follows:        

ü               Pay to Kishan Lal or Order

P. Ram Dev

(Signature)